| Why "Unbelievable" Credit-Card Offers Are Bad |
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BlankenshipFP
Money Talk Advisor
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| Why "Unbelievable" Credit-Card Offers Are Bad |
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Some credit card companies are offering "0%" financing options. The reason: Americans have so many credit cards already, there is no more market for selling new ones.
The object of the 0% offer is to get cardholders to put all their debt on a single card. The 0% offer is not indefinite. It lasts only for a specified period of time or until the cardholder has violated one of the rules written in small print. The most common such rule is that if you are a day late in making a monthly payment -- not just on that credit card debt but on any debt, including your mortgage or car loan -- the 0% is immediately lifted. And they begin charging you pretty much whatever they want to.
Most cardholders are not aware of this catch -- and that's exactly what the credit card companies are hoping for. They are betting that most of those who switch to their 0% accounts will soon be paying large fees on large balances.
From "Early To Rise" 12/3/2004
Jim Blankenship, CFP�, EA
Blankenship Financial Planning, Ltd.
www.BlankenshipFinancial.com
Standard IRS Circular 230 Notice Applies
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Fri Dec 03, 2004 12:20 pm |
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xboxundone
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| Re: Why "Unbelievable" Credit-Card Offers Are Bad |
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quote:
Originally posted by BlankenshipFP
Some credit card companies are offering "0%" financing options. The reason: Americans have so many credit cards already, there is no more market for selling new ones.
The object of the 0% offer is to get cardholders to put all their debt on a single card. The 0% offer is not indefinite. It lasts only for a specified period of time or until the cardholder has violated one of the rules written in small print. The most common such rule is that if you are a day late in making a monthly payment -- not just on that credit card debt but on any debt, including your mortgage or car loan -- the 0% is immediately lifted. And they begin charging you pretty much whatever they want to.
Most cardholders are not aware of this catch -- and that's exactly what the credit card companies are hoping for. They are betting that most of those who switch to their 0% accounts will soon be paying large fees on large balances.
From "Early To Rise" 12/3/2004
This is so true!!! Luckily i never feel victim to this for several reasons. 1 I rarely ever apply for new credit card.... 2 I make ALL my payments on time!
3. I never carry a balance on any of my credit cards.....
I don't think people realize how much mony they Throw out the window by carrying a balance on a credit card. Read this article to see how much people actually throw out in interest http://www.investingpub.com/new1.php?action=fullnews&id=9
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Fri Dec 03, 2004 12:54 pm |
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Andrew
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Best way to avoid being late is to have an automatic payment setup.
Even better is to pay cash. 
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Fri Dec 03, 2004 2:08 pm |
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xboxundone
Senior Member
Cash: $ 67.83
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quote:
Originally posted by Andrew
Even better is to pay cash.
Cash is so 90's
Actually if you want to stay out of debt Always pay cash.... Unfortunately the society is moving more and more to electronic and plastic for money transactions.
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Fri Dec 03, 2004 2:25 pm |
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Andrew
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In this case, cash could be actual cash bills, a check, or a debit card. Anything to keep it off the credit card.
Bartering is good too!
But as far as getting more credit, this guy doesn't seem to care...
Meet Mr. Plastic Fantastic
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Fri Dec 03, 2004 3:29 pm |
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xboxundone
Senior Member
Cash: $ 67.83
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quote:
Originally posted by Andrew
In this case, cash could be actual cash bills, a check, or a debit card. Anything to keep it off the credit card.
Bartering is good too!
But as far as getting more credit, this guy doesn't seem to care...
Meet Mr. Plastic Fantastic
WOW that guy has almost 1500 credit cards and 1.7 millin in credit!!! WOW
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Fri Dec 03, 2004 4:04 pm |
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papayabhai2002
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| Haha |
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thats too muchhhhh
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Wed Mar 02, 2005 6:31 am |
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sagetips
New Member
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Joined: 14 Jun 2004
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Actually the 0% credit card offers and other "unbelievable" deals are quite good for financially responsible users. Sure there are deadlines and fine print details to pay attention to. What part of financial life doesn't have these? Taxes? Home mortgages?
The bottomline is that if you're willing to spend the effort and time, 0% offers can save you big. I moved $15,000 from a HELOC to a Discover 0% for life offer. I plan on saving close to $1,000/year interest from this deal. If I falter along the way, I write a HELOC check and move the balance back to where it was. Not for everyone, but it can (and does) work.
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Fri Mar 04, 2005 12:51 am |
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